- Merrill Lynch recently announced plans to triple its active ETF lineup, given the demand for these products.
- Although thematic strategies have generated many headlines, traditional core strategies, coupled with the use of derivatives, have demonstrated a higher likelihood of reaching the necessary scale in the active ETF space.
- Large Growth and Large Blend collectively represent 24% of the nearly $155 billion year-to-date net inflows and 21% of calendar year 2023 net inflows. Derivative and Structured Outcome strategies have also garnered significant flows, powered by products such as JP Morgan Equity Premium Income ETF and the Innovator/FT Buffer ETFs.
- Product development initiatives should maintain a broad perspective, recognizing that core strategies in this context are far from basic.
